CreditUpdates.com on Business Spending Trends and the Impact on the Economy

CreditUpdates.com on Business Spending Trends and the Impact on the Economy

A number of recent reports have indicated that capital spending has dropped at a rate not seen since 2009, which should be a cause for major concern considering the fact that the decrease in spending by businesses was a significant part of the reason for the stalled economy of the most recent recession. Currently down 6.2 percent over the past year — due in part to the 2.1 percent decline occurring during the last quarter of 2015 — the drop in business spending comes at a time when consumer spending is up by a fairly large margin.

Perhaps an analysis performed by a company like CreditUpdates.com would provide some insight into the factors causing this drop, as experts across a variety of sectors have chalked up the decline to everything from the uncertainty associated with the upcoming presidential election to nothing more than a lag between the period of market recovery and a return to the hiring and investment practices reflecting that recovery.

In the same way that the sensible utilization of available credit can help improve a company’s credit rating, so too can capital spending assist in lifting the economy on a massive scale. While the Federal Reserve’s interest rates and policies are certainly having an impact on the decision-making process being utilized by business leaders, the benefits associated with a return to spending appear likely to outweigh the drawbacks.